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Human Resources Development Act 1992, Page 2

PART II - HUMAN RESOURCES DEVELOPMENT LEVY

3. Imposition of levy.

(1) Subject to section 5, there shall be imposed on every employer a human resources development levy in respect of each of his employees at the rate of one per centum of the wages in any month of the employee.

(2) The Minister may, from time to time, by order published in the Gazette reduce or increase the rate of the levy specified in subsection (1).

(3) Where an employer fails to pay any levy due within such period as may be prescribed, the employer shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding ten thousand ringgit or to imprisonment for a term not exceeding two years or to both.

(4) Prosecution for an offence under subsection (3) shall not preclude the right of the Council to recover the amount of any levy due under this Act from the employer.

3A. Imposition of levy on specified employer.

(1) Notwithstanding subsections 1 (2) and 3( 1), an employer in the manufacturing industry with ten but not more than forty-nine employees and with a paid-up capital of less than two million and five hundred thousand ringgit, and who opts to be registered with the Council, shall be imposed a human resources development levy in respect of each of his employees at the rate of 0.5 per centum of the wages in any month of the employee.

(2) In the event of any default in the payment of any levy due under subsection (1), the provisions of subsections 3(3) and (4) shall apply.

3B. Interest on levy due but not paid in time.

An employer who fails to pay any levy due within such period as may be prescribed, shall be liable to pay interest thereon at the rate of ten per centum per annum in respect of each day of default or delay in payment:

Provided that—

(a) if the amount of interest so calculated is less than five ringgit, the interest payable shall be five ringgit in respect of each month or part of a month of the default or delay in payment; or

(b) if the amount of interest so calculated exceeds five ringgit, the interest payable shall be calculated to the next highest ringgit in respect of each month or part
of a month of the default or delay in payment.

4. Duty of employer to register with Council.

(1) Every employer to whom this Act applies shall register with the Council within such time and in such manner as may be prescribed.

(2) Any employer who contravenes subsection (1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding five thousand ringgit or to imprisonment for a term not exceeding one year or to both.

(3) Where any person ceases to be an employer under this Act, he shall within thirty days of such cessation notify the Council in such manner as may be prescribed.

(4) Any person who contravenes subsection (3) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding two thousand ringgit or to imprisonment for a term not exceeding six months or to both.

(5) The Council shall maintain a register of all employers registered under this Act, together with a record of any payments made.

5. Exemption from levy.

The Minister may, from time to time, by order published in the Gazette exempt fully or partly any of the employers or class of employers from the payment of the levy in such circumstances and subject to such conditions as may be prescribed in the order.

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